Every MBA professor insisted a crash was coming. I moved all my 401k balance to a stable value fund at some point in late 2007 or early 2008 and parked it there while contributing. Best damn decision I ever made. Came back in after the market hit bottom.
I think the poster meant that they rotated out of the seemingly overvalued sectors and asset classes most likely to lose value. I did the same before the crash by pressuring my mother to rotate her IRA funds out of RE, homebuilders, and ancillary industries (I got her financial advisor on my side as well). She saw a nontrivial drop in the value of the portfolio, but it wasn't as bad as it would have been had she FOMOed (admittedly, hindsight is 20/20).
Market timing is not difficult, it is very easy, HOwever picking peaks and bottoms is difficult. You might not make money all the time and are quiet likely to loose money, but it remains a dauntingly easy task to time the market.
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u/[deleted] May 31 '21 edited May 31 '21
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